How were Applied Materials and Lam Research affected?

Applied Materials (AMAT) fell 3.2%, and Lam Research (LRCX) dropped 2.8%.

Were other chip companies affected?

Yes, NVIDIA (NVDA), AMD (AMD), and others also declined.

Chip Stocks Slide on Broadcom Earnings and Strong Jobs Data

Shares of semiconductor companies declined sharply in afternoon trading as the combination of Broadcom's (AVGO) earnings overhang and a stronger-than-expected U.S. jobs report drove one of the broadest chip selloffs of the year.

June 6, 2026

2 min read

Source: StockStory

Several semiconductor stocks fell in afternoon trading after Broadcom's (AVGO) earnings overhang and a stronger-than-expected jobs report combined to trigger one of the broadest chip selloffs of the year.

Potential Causes

Broadcom (AVGO) Earnings: Broadcom's results raised concerns about slowing demand in the chip sector, dampening investor sentiment across the industry.
Strong Jobs Report: The stronger-than-expected U.S. jobs report reinforced expectations of further interest rate hikes by the Federal Reserve, which typically weighs on growth stocks like technology companies.

Context

Stock Performance: Applied Materials (AMAT) fell 3.2%, Lam Research (LRCX) dropped 2.8%, and Broadcom (AVGO) declined 4.1%.
Sector: The broader semiconductor sector weakened, with the Philadelphia Semiconductor Index (SOX) falling 2.5%.

Similar Moves in the Sector

Losses were not limited to these stocks; other chip companies such as NVIDIA (NVDA) and AMD (AMD) also declined by varying percentages.

Frequently Asked Questions

The selloff was driven by Broadcom's (AVGO) earnings raising demand concerns and a stronger-than-expected jobs report reinforcing rate hike expectations.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.